Special Journals

Lessens workload of recording transactions since there would be a division of labor. Possibly,
designating a person to manage only one specific type of special journal.

Columns used by the Special Journals:

Specific Headings/Special Columns- showing fixed accounts associated in a transactions, so you
would only have to write the amounts (at times not all fixed accounts are used)
Different case for, Sundries or Others column- non-repetitive accounts having to write the
account name and amount, the use of accounts under here, follows the movement of the fixed
accounts

Sales Journal- Fixed columns: AR (dr)

starting pt. sold goods Sales (cr), Output Tax (cr)

Transaction Descrip:
NO cash involvement, keep track of income as sales

Transaction with Customer

Purchase Journal- Fixed columns: Purchase(dr), Input Tax (dr)
starting pt. purchased AP (cr)
goods to be sold
Transaction Descrip:
NO cash involvement, keep track of temporary assets bought as
purchase

Transaction with Supplier

Has columns for Invoice No., Terms and Folio (as check marks)

Due to their broad nature, sundries columns were adapted

Cash Receipts Fixed columns: Cash (dr), Sales Discount (dr) , Output Tax (dr)
Journal - pt. of AR (cr), Sales (cr)
receiving cash, Possibilities, to record under Sundries Column:
regardless of nature Notes Payable (cr), Output Tax (cr)

Transactions Included:
Directly receiving cash as exchange for selling goods (sales),
Dec AR, to receive cash (in discount period)
Dec AR, to receive cash (outside discount period)
Receiving cash from a loan

Transaction with Payor

Column for Official Receipts No.

Cash Disbursements Fixed columns: AP (dr), Purchase (dr)

Journal- pt of paying Cash (cr), Purchase Discount (cr), Input Tax (cr)
 w cash, regardless of Possibilities, to record under Sundries Column:
nature Expense Account (dr), Input Tax (dr)

Transactions Included:
Directly paying cash as exchange for items to be sold (purchase),
Dec AP, to pay w cash (in discount period)
Dec AP, to pay w cash (outside discount period)
Payment of expenses

Transaction with Payee

Column for Cash Voucher No., & Check No.

Subsidiary Ledger - accordingly to who the business is in a transaction with

2 types of subsidiary ledgers: AR & AP
(posting, daily updated)
From AR (dr) Sales Journal to Subsidiary Ledger
From AP (cr) Purchase Journal to Subsidiary Ledger
From AR (cr) Cash Receipts Journal to Subsidiary Ledger
From AP (dr) Cash Disbursements Journal to Subsidiary Ledger
Involvement of AP/AR from General Journal to Subsidiary Ledger

In Item column: cash and discount terms, “credit memorandum”, “debit memorandum”

In Debit/Credit Balance columns, somewhat predetermined, avoid confusion since AR’s normal
balance is debit while AP’s normal balance is credit.
Notes:
- who you are in a transaction with, sorted alphabetically
- put a check mark , in the folio of that specific type of journal, to identify whether you have
already posted the transaction in the subsidiary ledger

General Ledger- posting transactions by their account title

(posting, monthly updated, just record the account’s total balance per special journal)
From Special columns to General Ledger
From General Journal to General Ledger

(posting, daily updated)

From Sundries columns to General Ledger

General Journal - nonrepetitive transactions so no use for special headings/columns (immediate,

daily recording)
Includes transactions dealing with: PRA w Input Tax dec AP, SRA w Output Tax dec AR, PD,
SD, VAT Payable, depreciation, bad debts, transfer from AR to notes receivable, transfer from
AP to notes payable, inc acct for drawing or capital: w/ purely non-cash assets involvement
Guide for posting entries...
Special-journals-Subsidiary-Ledgers.-updated-version.xls - Google Sheets

In Service Bus
They use the 3 type of special journals:
Service Journal (instead of Sales Journal)
Cash Receipts Journal
Cash Disbursements Journal
General Journal
(no use for a purchase journal, since there is no transaction of purchasing goods in
hopes for them to be sold in the same condition)